Dow Jones futures, S&P 500 futures, and Nasdaq futures all fell slightly after hours. Interestingly, Advanced Micro Devices (AMD) took the spotlight with its overnight earnings announcement, coinciding with the conclusion of the Federal Reserve’s two-day meeting. The stock market rally experienced a quiet yet encouraging session, as major indexes reversed earlier declines. Nvidia stock briefly hit new lows on Tuesday morning but managed to limit its losses. Market breadth improved slightly, but the overall downtrend remains unbroken. Arista Networks was a major winner on Tuesday, surging toward record highs after plummeting last week due to Meta Platforms’ capital spending plans. Pinterest and Cameco also experienced a significant gap up in prices following their earnings reports, leading to buy signals. However, it’s important to note that risks are now elevated. Meanwhile, Tesla saw a modest rise as a jury concluded that the Autopilot feature was not at fault in a fatal accident. Conversely, ELF Beauty experienced a sharp decline heading into its earnings report on Wednesday night. In terms of futures, Dow Jones futures fell 0.2% while S&P 500 and Nasdaq 100 futures slipped by the same percentage. It’s important to remember that overnight action in futures doesn’t always translate to actual trading in the next regular stock market session. AMD reported better-than-expected third-quarter earnings and sales, but its weak guidance led to a drop in stock price initially, despite a small rebound later on. Paycom Software surpassed EPS expectations, but fell short in terms of revenue and Q4 guidance, resulting in a significant decline in stock price. Meanwhile, an FDA advisory panel provided generally positive feedback regarding a gene-therapy treatment for sickle cell disease, developed by Crispr Therapeutics and Vertex Pharmaceuticals. Although the panel did not vote on recommended approval for the treatment, Crispr stock remained halted throughout the day. Vertex stock, on the other hand, bounced off the 50-day line. Tesla stock experienced a slight recovery, moving away from a five-month low after winning its Autopilot lawsuit involving a 2019 fatal crash. Li Auto, XPeng, and Nio, China’s Tesla rivals, are expected to release their October delivery reports, with Li Auto announcing that its deliveries exceeded 40,000 for the first time. BYD, an EV and battery giant, is also set to report its October sales. All four EV makers, including Tesla, experienced declines on Tuesday due to weak China economic data.
Dow Jones Futures Soar as Tesla Autopilot Triumphs; Federal Reserve on Horizon, AMD Faces Late Challenges
